New report: No Ill Effects on U.S. Economy Found For Continued Pressure on Kremlin
New research released today shows that the sanctions against Russia for their invasion of Ukraine have been effective in pressuring and punishing the aggressor, although stronger sanctions would be necessary to further prevent Russian disruptive actions and resolve the conflict in Eastern Ukraine. The report, written by independent sanctions experts and commissioned by Rasmussen Global, […]
New research released today shows that the sanctions against Russia for their invasion of Ukraine have been effective in pressuring and punishing the aggressor, although stronger sanctions would be necessary to further prevent Russian disruptive actions and resolve the conflict in Eastern Ukraine.
The report, written by independent sanctions experts and commissioned by Rasmussen Global, reveals that travel bans and asset freezes have deterred Russia from expanding the conflict beyond Eastern Ukraine. Further, European unity on the issue is strong despite the sanctions’ economic impact on some European economies. Conversely, the report finds that the impact on U.S. economic interests has been negligible.
The report shows that:
- Sanctions have not harmed U.S. trade opportunities, and that any decline in U.S.-Russia trade began long before sanctions were imposed;
- U.S.-Russia trade in goods and services is less than one percent of U.S. total trade with the world;
- U.S. GDP has continued to rise since sanctions were put in place, but Russia’s GDP has fallen significantly (-3.73 percent in 2015);
- At the same time, sanctions are not targeting the entire Russian economy, only the people and companies at the center of Russian aggression.
As a result of the findings, and in light of Russia’s attempts to escape accountability for their aggression, Rasmussen Global – founded by former NATO chief and Danish Prime Minister Anders Fogh Rasmussen – has proposed that the sanctions be broadened to include people and companies that have recently expropriated businesses in eastern Ukraine. Rasmussen is also calling for a special envoy for Ukraine to be appointed by President Donald Trump to underline the importance that he places on resolving the conflict.
Rasmussen and Alexander Vershbow, former NATO Deputy Secretary General and US Ambassador to Russia, will present the report at the Hudson Institute in Washington next week, where they will also discuss the importance of the U.S. Administration developing a clearer policy towards Russia.
Ambassador Alexander Vershbow comments:
“Western economic sanctions have been an effective response to Russia’s unprovoked war in Ukraine. They have forced Putin to the negotiating table and contained Moscow’s ambition for territorial expansion. They have also cautioned other countries that might have been emboldened to follow Russia’s lead.
“This report shows that there is no credible economic case for easing sanctions, and certainly no political or diplomatic case until Russia complies with its obligations under the Minsk agreements and ceases its proxy war in eastern Ukraine.
“There is even a case for economic sanctions to be expanded to address the recent expropriation of Ukrainian businesses by Russian-backed separatists in eastern Ukraine. The sanctions regime must adapt as Russia’s provocative activities in Ukraine evolve.”
To download a Rasmussen Global factsheet with key takeaways and policy recommendations from the report, click HERE
The full report is available HERE